This book contains a selection of papers that have been prepared for the NATO Advanced Research Workshop on the Economics of Atmospheric Pollution, that took place in Wageningen, The Netherlands, November 1994, hosted by Wageningen Agricultural University and sponsored by NATO Scientific and Environmental Affairs Division. Participants from the USA and a large number of countries in Western, Central and Eastern Europe have participated to discuss the economic aspects of transboundary air pollution and climate change. A number of selected papers have been reviewed and revised on the basis of the comments provided. The editors kindly acknowledge the support of Prof. Charles Kolstad, University of California, Santa Barbara, and Prof. Stef Proost, Center for Economic Studies, Catholic University Leuven, for reviewing several chapters of the book. Also the assistance of several anonymous reviewers is kindly acknowledged. We hope that the book will contribute to a better understanding of the most relevant issues in the area of international policymaking on transboundary pollution and climate change, and that it contributes to further economic analysis in this interesting research area. The topic of transboundary pollution related to climate change, acidification and tropospheric ozone will in the coming decades continue to be relevant for all countries in the world. Ekko van Ierland Kazimierz Gorka WageningeniCracow, June 1996 CONTENTS 1 On tbe Economics of Atmospberic Pollution Ekko van IerJand Wageningen Agricultural University, The Netherlands.